42% of Ontarians spend entire paycheque: Survey

The Canadian Payroll Association believes Ontarians are spending too much and saving too little.

The association’s survey found 42 per cent of people living in Ontario spend all of their net paycheque, right in line with the national average of 41 per cent.

It says 43 per cent of Ontarians save just five per cent of their paycheques, well shy of a recommended 10 per cent threshold.

A quarter of Ontarians say they would be unable to come up with $2,000 in a single month to address an emergency, slightly above the Canadian average of 22 per cent.

And 32 per cent of Ontarians report a spike in their debt levels, while 37 per cent of them say they feel overwhelmed by the amounts they owe. Both figures are in line with national averages.

The association blames higher cost of living for an overall increase in spending, which in turn leads to a rise in overall debt levels.

This speaks of a problem that is troubling-half of the province’s residents live paycheque to paycheque. The survey found that 47 per cent of Canadians reported being unable to meet their financial obligations if their paycheques were delayed for a single week.

The survey, which polled 4,766 Canadian employees between June 27 and Aug. 5, also found that 35 per cent said they feel overwhelmed by their level of debt.

The recent interest rate hike will only make the situation even more precarious for Ontarians in this position. – CINEWS